TSX: SCL.A, SCL.B
TORONTO, Feb. 18 /CNW/ - ShawCor Ltd. (TSX: SCL.A, SCL.B) advises that its Bredero Shaw division does not now expect to participate in the pipe coating for the Nord Stream pipeline project. Nord Stream AG has announced that it will enter into a letter of intent with EUPEC PipeCoatings S.A. by the end of February for the supply of concrete weight coating and logistics services for the Nord Stream pipeline. Bredero Shaw and Nord Stream were unable to agree on project pricing and certain contractual terms for this project. Bredero Shaw understands that the pricing at which the pipe coating work will be awarded is below the level it requires to obtain a satisfactory financial return and ensure timely and adequate execution, given the scope and risks associated with meeting Nord Stream's requirement that the project be executed through new greenfield facilities in Germany and Finland. Further information regarding the Nord Stream announcement can be found on the Nord Stream web site (www.nord-stream.com).
ShawCor Ltd. is an energy services company specializing in products and services for the pipeline and pipe services and the petrochemical and industrial segments of the oil and gas industry. The company operates through six divisions with over sixty manufacturing and service facilities located around the world.
Bredero Shaw, ShawCor's largest division, is the global leader in pipe coating solutions. The division provides specialized coating systems and related services for corrosion protection, insulation and weight coating applications on land and marine pipelines including highly engineered corrosion and insulation systems for deepwater applications.
This new release contains forward-looking information within the meaning of applicable securities laws. Words such as "may", "will", "should", "anticipate", "plan", "expect", "believe", "predict", "estimate", and similar terminology are used to identify forward-looking information. This forward looking information is based on assumptions, estimates and analysis made in light of the company's experience and its perception of trends, current conditions and expected developments, as well as other factors that are believed by the company to be reasonable and relevant in the circumstances. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from those predicted, expressed or implied by the forward-looking information. The risks and uncertainties include, among other things, changes in global economic activity and changes in energy supply and demand which impact on the level of drilling activity and pipeline construction; political, economic and other risks arising from international operations; compliance with environmental, trade and other laws; liability claims; fluctuations in foreign exchange rates and fluctuations in raw material prices, as well as other risks and uncertainties that are more fully described in the company's Annual Information Form, annual and quarterly reports and in other reports and filings made with securities regulatory authorities and available at www.sedar.com.